It has been about a month since the last earnings report for RPC (RES). Shares have added about 8.7% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is RPC due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
RPC Q4 Earnings Miss Estimates
RPCreported fourth-quarter 2025 adjusted earnings of 4 cents per share, which missed the Zacks Consensus Estimate of 7 cents. The bottom line also declined from the year-ago quarter’s level of 6 cents.
Total quarterly revenues were $426 million, up from the year-ago quarter’s $335 million. The top line beat the Zacks Consensus Estimate of $425 million.
The weak quarterly earnings can be attributed to a higher cost of revenues, primarily due to a change in accounting treatment for wireline cable to expensing, which was previously capitalized, and reduced customer activity, mainly in December. However, contributions from the Pintail Completions acquisition partially offset the negatives.
Segmental Performance
Operating profit in the Technical Services segment totaled $8.5 million, lower than the year-ago quarter’s $10.6 million. The decline includes the impact of a change in the accounting treatment of wireline cables from capitalization to expensing in the quarter. The segment was also affected by weakness in downhole tools in the international markets and the Rocky Mountain region.
Operating profit in the Support Services segment amounted to $1.7 million, lower than the year-ago level of $2.6 million. The segment was mainly affected by decreased activity in rental tools, mainly in December, driven by lower customer activity.
The company’s total operating loss in the quarter was $4 million, compared with a profit of $10.5 in the year-ago quarter. The average domestic rig count was 548, down 6.5% year over year.
The average oil price was $59.79 per barrel, down 15.3% year over year. The average price of natural gas was $3.69 per thousand cubic feet, 51.9% higher than the figure recorded in the corresponding period of 2024.
Costs & Expenses
In the fourth quarter, the cost of revenues (excluding depreciation and amortization) increased to $336.6 million from $250.2 million in the prior-year period. Selling, general and administrative expenses amounted to $47.7 million, higher than the year-ago quarter’s $41.2 million.
Financials
RPC’s total capital expenditure for the year was $148.4 million.
As of Dec. 31, 2025, the company had cash and cash equivalents of $210 million and maintained a debt-free balance sheet.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -83.33% due to these changes.
VGM Scores
At this time, RPC has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise RPC has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
RPC belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Baker Hughes (BKR), has gained 2.9% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Baker Hughes reported revenues of $7.39 billion in the last reported quarter, representing a year-over-year change of +0.3%. EPS of $0.78 for the same period compares with $0.70 a year ago.
Baker Hughes is expected to post earnings of $0.53 per share for the current quarter, representing a year-over-year change of +3.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Baker Hughes has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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RPC, Inc. (RES): Free Stock Analysis Report Baker Hughes Company (BKR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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